KREDIT und KAPITAL - Issue 1/1972



Krümmel, Hans-Jacob
Zur Rentabilität der Kreditinstitute

Kath, Dietmar
Die verschiedenen Ansätze der Zinsstrukturtheorie

Teichmann, Ulrich
Möglichkeiten und Grenzen einer antizyklischen Geldpolitik


Raettig, Lutz R.
Verwendung der Rechnungseinheit in der EWG

Book Reviews

Binswanger, Hans Christoph
Markt und internationale Währungsordnung (Manfred Willms)

Küster, Georg
Untersuchungen zur Einkommensverteilung im Wirtschaftswachstum (Friedrich Dienethal)

Folz, Willibald Jr.
Das geldtheoretische und geldpolitische Werk Walter Euckens (Ulrich Schirmer)

Steuer, Werner
Die Aufwertungsspekulation (Henning Löber)

Bruns, Georg und Häuser, Karl
Deutscher und internationaler Kapitalmarkt (Henning Löber)


Krümmel, Hans-Jacob
"On the Profit Policy of Banks"

Proceeding from the special situation of the German banks in the high interest phase, the author examines the medium-run trend of profitability. It is shown that in the ranges of services offered, which are peculiar to the various groups of institutions and have evolved in the course of long development processes, an in their consequences the group-typical forms of supply and price policy in conjunction with changed market shares, changed clientele structure and changed taxation of bank earnings have resulted in disparate development of the profitability situation of the institutional groups. Phenomena such as increasing "bank habituation" and the public's growing sensitivity to changes in the interest rate, which have given rise above all to marketing measures on the part of the banks themselves, play a special role in this connection. In a second part the author investigates possibilities of applying bank price policy measures to compensate for profit policy measures. In this context he discusses thoroughly the aspects of abandonment of far-reaching freedom from charges (abandonment of excessive compensatory prices which are detrimental to the lending business). In conclusion the limited possibilities of reorganizing and enriching the assortment of bank services with the object of improving profitability are ventilated.


Kath, Dietmar
"The Various Approaches to the Theory of Interest structure - An attempt at systematisation"

This contribution gives a survey of the various approaches to the theory of interest structure. The presentation is oriented to the specific risks arising in connection with the disposition of assets over time, i. e. the income risk and the capital risk. The systematics of interest structure theory developed on this basis makes it possible to classify the diverging explanatory principles as alternative behavioural hypotheses relative to one and the same risk constellation.

While the theory of expectation implies indifference of investors to both risks, the hedging pressure hypothesis proceeds from the assumption of their total avoidance. Two further approaches assume that economic entities have a preference for one of the two risks. For instance in accordance with the liquidity preference theory they give greater weight to the capital risk than to the income risk, and the preferred habitat theory ascribes to them as a priori, non-specified preference for certain fixed investment periods and hence also a risk preference. In the course of the study it is shown that in the concrete investment behaviour of economic entities indications and pointers can be found for the two competitive objectives of asset disposition, viz. maximization of interest earnings and the avoidance of risk. A great variety of econometric investigations of interest structure, on the other hand, failed to find a complete explanation of the empirical patterns with either one or the other hypothesis. On the contrary, both empirical facts and theoretical arguments speak in favour of a model synthesis of both explanatory principles. The liquidity preference hypothesis as extended by R. A. Kessel is considered by this study to be an approach of this nature. By taking account of the cost aspect of interest arbitrage in addition to liquidity preference, Kessel arrives at a logical theoretical conception with which also the empirical patterns of temporal interest structure can be explained. In conclusion points of departure are presented for ascertaining in what way a synthesis of the temporal and institutional aspects of interest structure seem possible and, over and above that, how such a generalized theory of interest structure could be included in a higher-order, macroeconomic nexus of systems.


Teichmann, Ulrich
"Possibilities and Limitations of Anticyclical Monetary Policy"

In our presentation we have set out (1) to enumerate the causes of the belated and therefore mostly procyclical effect of conventional monetary policy (in particular, drawing attention to the monetary recession amplifier), and (2) to develop from this point of departure cyclical strategies which help at least to limit those undesired effects, if not to eliminate them completely. We came to the following conclusion: When a state of marked overstimulation has already been reached because the impact of dynamic cyclical forces outweighs the effect of the - mostly belatedly applied - anticyclical measures, the possibilities of credit policy for subsequently offsetting that overstimulation without simultaneously laying the foundation for the next, similarly exaggerated countertrend are strictly limited.

On the other hand, a monetary policy which is oriented not so much to cyclical extremes, but more to the intervening expansion and contraction phases, is more likely to succeed in stabilizing the overall economic trend. But since extensive strains on liquidity in the boom and expansion of liquidity in the recession impose a liquidity handicap on anticyclical policy in there sponsive intermediate phases, any monetary strategy must accordingly not be directed against current exaggerated trends for the short run only, but must make allowances in the measures adopted also for the impact on the following phases and include it in the cyclical policy calculus. For instance, it may be expedient to desist from present intensive employment of monetary instruments in favour of a later phase in which they can be used more appropriately, and to perform the current task with other means, as a rule the means of fiscal policy.



Raettig, Lutz R.
"The Use of the Unit Account in the EEC"

In connection with the creation of an European capital market, the unit of account, which in any case is of importance as a statistical magnitude, is assuming an increasingly important role on the loan markets. in particular, the European unit of account (RE) and the European currency unit (E) have gained acceptance.

The value of the RE is tied to the gold parity of the so-called reference currencies, that is, the 17 currencies of the member countries of the former European Payments Union (EPU). A change in that value can be effected only if the following conditions are simultaneously satisfied: changes in the gold parity of all reference currencies and movement of the parities of at least two thirds of the reference currencies in the same direction. If these preconditions are fulfilled, the lowest revaluation or devaluation rate of a reference currency is taken as measure of the change in value of the RE. With regard to the currency of payment the investor has a choice, several currencies of payment being laid down as a rule in the terms of the loan. The issuer is entitled to prescribe the subscription currency.

The E, as a genuine European currency unit, must be seen against the background of the multiphase plan for the establishment of a European Economic and Currency Union, which will culminate in a uniform community currency. Its basis comprises the currencies of the EFC member countries. Relative to these currencies it has a fixed parity for the entire term of the loans. Any of the base currencies can be chosen as the currency of payment.

From the investor's viewpoint, use of the RE is advisable above all if the home currency is devalued while there are no changes in the other reference currencies. The subscriber to an e loan is fully safeguarded, especially in the event of devaluation of an EEC currency, by the parity guarantee.

In contrast to the RE, there is furthermore protection against losses due to up valuations of the subscription currency.

In the case of both units of account, the advantages for borrowers lie particularly in the market conditions: lower costs, lack of market restrictions. On the other hand, there are disadvantages inherent in the currency option to which bond subscribers are entitled.

On the whole, these types of bonded loans can be regarded as an important step towards integration of the European capital markets. Proof of this has already been supplied by the creation of well-functioning primary and secondary markets.